GTB 737 banner Yudala banner

Recession an eye opener: Soludo

By Pamela Eboh, Awka on 19/05/2017

Share on facebook Yahoo mail icon Gmail icon

Views: 271

•Ex-CBN Governor Soludo.
•Ex-CBN Governor Soludo.

Former Governor of the Central Bank of Nigeria (CBN), Professor Chukwuma Soludo, has called on the nation’s leaders to begin to think of Nigeria as a country without oil saying that the present economic recession has served as a big eye opener for Nigerians.

Speaking Thursday in Awka at the 2017 International Conference of the Department of Business Administration of the Nnamdi Azikiwe University (NAU), Awka on the theme, ‘Managing A Recessed Economy: Options for Nigeria’,  Soludo stressed that until the mindset of Nigerian leaders were moved away from sharing of oil revenue, the country would continue to experience problems.

While advising that it was necessary to begin to think of alternative to oil, the former Central Bank Governor observed that oil had done wreckage to the country’s economy.

According to him, success and failure are all in the mind and only those who persist get to their destination.

“The recession Nigeria went into was largely avoidable and for things to change for the better, Nigeria cannot afford intellectual isolation because there is need for exchange of ideas among intellectuals from various fields to put things right.

“Though economic crisis started in 2007 when most countries were witnessing recession, Nigerian economy was growing because of the power of ideas of the people in charge. Instead of sustaining the growth, we drove the economy into this recession.

“For example, between 2010 and 2014, oil price was above $100 per barrel but we were unable to accumulate foreign reserve. When I took over as the CBN Governor, foreign reserve was about $10 billion and we kept growing it on annual basis as a deliberate policy such that it was over $45 billion by the time I left.

“In 2010, I warned that if oil prize went down to below $40 per barrel, most states would not be able to meet their obligations and that was exactly what happened. So the problem was that we were not saving and we were even borrowing to implement recurrent expenditure.

“We were borrowing for consumption and for capital projects with the result that all the money we spent was borrowed at a time.

“When the oil prize slumped, some people in government even felt that it was not going to last and continued their spending spree. Some also felt that the exchange rate could be fixed and some of us warned that doing so would result to high inflation.

“And when the problem manifested, fire-fighting approach was adopted by the CBN which decided to give bailout to states. Because of these responses, the economy witnessed a shock and we thought we could reinvent economic theory and principle as a unique Nigerian approach,” he stated.

Soludo, however, hailed the recently launched economic recovery plan by government adding that it will eventually lead to recovery, especially as there was mounting pressure on government to perform because election was approaching.

He added, “What I call Abuja’s stranglehold on the economy was impacting negatively on the economy. The number of items in the exclusive list must be reduced in favour of states.

“We do not have to be running to Abuja for everything and that was why I was surprised when some people canvassed that Local Governments should be going to Abuja to take their allocations directly.

“The first step should be, to revert the control of minerals to the states, which should pay taxes to the Federal Government.”

Source News Express

Posted 19/05/2017 12:02:22 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

 

You may also like...
Obiano wins ‘People’s Choice Award’ from Ndi Anambra...

19 killed in Rivers cult clashes

The time has come to end money politics,...

Ambode woos foreign investors to Lagos

Supreme Court jails ABU Professor for enticing married...

PDP condemns Nyanya, Kuje bomb attacks

Kanu, Zakzaky: Buhari playing with fire —Southeast activists...

Railway contractors ordered to refund N25bn

New GOC 3 Division assumes duty, pledges to...

Osun ‘O-Jobs’ creates link between employee and employer...

Nigeria’s government humanitarian response agencies frown at exclusion...

NUC clears the air, says medical students now...

 

Latest News Toast to UCH Ibadan at 60, By Folu Olamiti (FNGE) Nigerian Army launches books on critical thinking 82 Boko Haram fighters die in battle •No LGA under terrorists’ control — Army South African policemen rob Nigerian man of $61,000 Notorious Lagos cultist re-arraigned Arms factory discovered in Abuja, suspects nabbed Send your wards to Nigerian schools, JAMB tells political elite Ghost worker on trial over N11m fraud Borno APC Coalition rejects Modu Sheriff Manufacturers want 7-year tax break West and Central African youth endorse campaign for greater participation in the political process Aiteo shuts Nembe creek trunk line over leakage

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (278,833 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (260,784 views) Shameless Genevieve Nnaji exposes breasts in public (211,717 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (177,859 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (176,814 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (158,525 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (136,791 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (126,814 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (120,406 views) Lagos plane crash: Journalist releases victims’ names (111,266 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (110,442 views) APC cries foul as PDP’s Fayose takes early lead in Ekiti governorship election (102,818 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (28) Business (2,695) Business Verdict (22) Columnists (744) Complaints & Requests (93) Enterprise & Opportunities (178) Entertainment (378) Features (489) Global Business Monitor (178) International (1,544) Interviews (130) Live Commentary (28) Love Matters (73) News (28,610) Opinion (809) Pidgin (8) Politics (3,939) Religion (627) Sports (1,323) Stock Watch (23) AMA & Al Jazeera Global Update

 

UBA mobile app

CBN words on marble advert

 

 

Manchester United vs Everton 4-0 All Goals & Extended Highlights

 

APO Newsbreak logo

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!